question archive 1)What are the main problems at Northco? 2)What makes it difficult for Northco to match supply with demand? 3)How should Michaels think about the costs of over and under-stocking? Identify the elements of over and under-stocking cost in this case
1)What are the main problems at Northco? 2)What makes it difficult for Northco to match supply with demand? 3)How should Michaels think about the costs of over and under-stocking? Identify the elements of over and under-stocking cost in this case
Subject:BusinessPrice: Bought3
1)What are the main problems at Northco?
2)What makes it difficult for Northco to match supply with demand?
3)How should Michaels think about the costs of over and under-stocking? Identify the elements of over and under-stocking cost in this case. Can you estimate any of these costs?
4)What is Northco's cost of capital? How does the cost of working capital impact supply-demand mismatch costs at Northco? How does the cost of capital impact operational decisions? This is a major part of the case and requires careful consideration. Hint: Why does Northco require payment in full at the time of fittings?
5)Identify changes to the way Northco does business currently that would enable it to better match supply with demand. Be specific and support your recommendations with course concepts and case facts. You should be able to apply some of the lessons learned from Sport Obermeyer since several facets of this situation are similar to Sport Obermeyer - (i.e. Northco operates in the apparel industry). Identify the costs and difficulties associated with implementing each of these changes. Are they likely to succeed?
6)Should Michaels buy Mrs. Eagle's company? Why or why not?
